ROCHESTER-DOVER — The third quarter real estate figures for Strafford County contain mostly good news, but not entirely so, according to Registrar of Deeds Leo Lessard.

"I am encouraged by the numbers. The real estate transfer tax (RTT) has done half a million dollars more than this time last year," said Lessard speaking about the nine-month period ended Sept. 30.

For the first nine months of 2011, the RTT — the tax charged on real estate transactions — amounted to $4,577,089, and the equivalent figure this year is $5,090,956. Of this money, 96 percent goes to the state and the county retains four percent.

This increase in revenue, said Lessard, is a clear indication that there is more activity and that property prices are rising.

In the first nine months of 2012, there were 2,571 deeds recorded, compared to 2,447 for the same period last year. This represents a five percent jump, and is the third successive year of improvement.

In the first nine months of 2012, there were 3,838 mortgages recorded, compared to 3,115 for the same period last year. This is almost a 19 percent increase, and is the second successive year of growth.

"The number of mortgages recorded is heartening. It shows that some people who were not able to refinance their mortgage can now do so. The increasing value of property is helping people to refinance," said Lessard. He explained that people whose property had been "upside down" — that is the value of their home had dropped below the amount owing on their mortgage — were now getting right side up, in that the rising value of their property was, in many cases, now more than their mortgage. This allows them to refinance their mortgage at a lower rate that they had previously, and save on monthly payments.

The sky is not all blue, though.

"I am concerned at the number of foreclosures, particularly in Rochester. People who were in trouble are still in trouble," Lessard said.

There have been 278 foreclosures in the county in the first nine months of 2012, which is almost the same as this time last year. Of that number, 97 have been in Rochester, which is the highest Q3 figure since the real estate market first showed signs of decline in 2007.

The number of foreclosures in Dover, too, has also increased this year, from 36 to 47 but below the Q3 peak of 2010, when there were 59 in the first nine months.

The good news for Strafford County is that the increased real estate activity has translated into increased revenues, partly through the small slice of RTT, but also through the cost of recording documents and with the provision of photocopies. Registry of Deeds revenues for the first nine months of 2012 are at $721,897, which is over $89,000 more than this time last year.

The improving figures concur with Realtor Bill Cormier of Hourihane and Cormier's experience.

"We continue to get more activity," he said, "and it is broad-based, from mobile homes to properties in the $250,000 range. Appraisers are very busy. It's getting a bit more challenging to get a timely appraisal," said Cormier, as an indication of the busier real estate market.

"It continues to feel like a gradual upturn and our inventory continues to grow," he added.

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